Global Backing on Nuclear Energy Expansion

• Fourteen (14) global financial institutions expressed support for tripling nuclear energy capacity by 2050.
• New €12.8M EU research project launched to develop LEU fuels for high-performance research reactors.
• India targeting 3x increase in nuclear capacity by 2031 and opening sector to private investment.
• Accelerating nuclear development worldwide will require substantially higher uranium prices.
• Uranium miners offer attractive exposure to rising demand and tightening market fundamentals.

A group of 14 global financial institutions, including major names like Bank of America, Barclays, Citi and Goldman Sachs, have expressed their support for the call to triple nuclear energy capacity by 2050 in order to enable deep decarbonization of the global economy. The endorsement came during New York Climate Week and reflects growing recognition in the finance community of nuclear power's crucial role in the transition to a low-carbon future.

"Capital markets and financing can play a critical role in developing and growing nuclear energy projects worldwide. Financial institutions can provide experience, global presence, services and solutions to support the industry," according to the World Nuclear Association.^[1]

The group's statement aligns with the call made by 198 countries at last year's COP28 climate conference to accelerate deployment of low-emission technologies like nuclear for rapid decarbonization, especially in hard-to-abate sectors. 25 nations also specifically pledged to work towards tripling nuclear capacity by mid-century.

"Our collective mission is clear - nuclear energy is clean energy, and if we are to ensure a liveable planet, build secure, sustainable supply chains for clean energy and bolster prosperity around the world, we need to make sure that nuclear energy does its part," said John Podesta, Senior Advisor for International Climate Policy to President Biden.

EU, India Pursue Nuclear Innovation and Expansion

The financial sector endorsement comes as nuclear development accelerates in markets around the world. In Europe, a new €12.8 million research project called EU-CONVERSION was launched to advance conversion of Europe's high-performance research reactors to low-enriched uranium (LEU) fuels.

The project involves a broad coalition of nuclear research organizations and will conduct irradiation testing of two candidate LEU fuels - uranium-molybdenum and uranium silicide - aiming to validate their performance under the extreme conditions required by Germany's FRM-II reactor and the future Jules Horowitz Reactor in France.

"The nuclear industry is making efforts around the world to reduce the use of highly-enriched uranium as fissile material, which is intended to prevent a potential spread and proliferation of this material," explained Jared Wight, program manager at Belgian Nuclear Research Centre SCK-CEN, one of the participating organizations. "It's a tough challenge, however, because of their specific technical specifications. But it's a challenge we intend to overcome."^[3]

Meanwhile, India is targeting a three-fold increase in its nuclear generating capacity from 6.8 GW today to 22.5 GW by 2031. The nation's latest budget included amendments to open the nuclear sector to private investment and participation for the first time.

"We are inviting private participation in the nuclear industry … we expect that the participation of private players would energise the nuclear power sector and help it grow rapidly," said Jitendra Singh, Minister of State with responsibility for atomic energy. "We have seen the kind of impact private players have had in the space sector. Something similar can happen in nuclear as well."^[2]

India recently shipped the third steam generator for the first two 700 MW pressurized heavy-water reactors at its Kaiga site, and manufacturer Larsen & Toubro says it aims to deliver 6-8 steam generators per year in support of the nuclear new-build program.

Uranium Mining Advancement and Overview

Energy Fuels

Energy Fuels is advancing its position as the leading U.S. uranium producer with a diversified portfolio of assets and business lines. Its White Mesa Mill in Utah is currently producing 1 million lbs of uranium annually with a path to 2-6 million lbs. The company recently reached a landmark agreement with the Navajo Nation to enable increased production while assisting with cleanup of legacy mines. Energy Fuels is also pioneering a U.S. rare earths supply chain at White Mesa, aiming to be a major domestic processor by 2027.

With exposure to strengthening uranium and rare earths markets plus government support, Energy Fuels presents a differentiated investment opportunity. As Chalmers notes,

"The fundamentals still look great for uranium. The price has come off but I think it needs to reverse itself. We'll start shipping ore from the Pinyon Plain mine in February - that's the highest grade mine out there in the United States...And we're starting up some of these other mines."

Mark Chalmers, CEO of Energy Fuels

Boss Energy

As an early mover in the uranium bull market, Boss Energy is ramping up production at its Honeymoon ISR mine in South Australia. CEO Duncan Craib discusses the company's strategy to capitalize on rising uranium prices, leveraging Honeymoon's low costs and scalability. Boss is taking a patient approach, with only 16% of production under contract to capture further price upside. Craib states,

"The uranium price has still got a lot of room to move. We're hoping that we can grow and expand. Of course Honeymoon's been our focus and the board's been very disciplined on me to make sure that the flagship asset works as it should be. But yes, I'm aware that you don't want all your eggs in one basket. We want to expand."

Duncan Craib, CEO of Boss Energy

Boss is evaluating organic growth options and potential M&A, with Craib noting "we're open-minded, it's just the timing." By playing its cards right, Boss Energy is on track to generate robust cashflow and "really deliver returns to shareholders and stakeholders alike." The company offers investors exposure to strengthening uranium fundamentals with additional growth potential.

Global Atomic

Global Atomic continues to advance its flagship Dasa uranium project in Niger, recently closing a C$35.6 million private placement to fund development. Dasa boasts robust economics as a large, high-grade, fully permitted deposit targeting first production in 2026. CEO Stephen Roman expresses confidence in securing the remaining financing, stating

"In Q1 2025 we will have positive news regarding the major component of funding for our Dasa Project in the form of either a bank financing or a joint venture agreement."

Global Atomic has already signed initial offtake agreements with utilities for a portion of future yellowcake production. The company also holds a 49% stake in the cash-flowing Befesa Silvermet zinc recycling plant in Türkiye. With key milestones approaching and exposure to strengthening uranium markets, Global Atomic presents an attractive growth opportunity.

Roman affirms "We will continue to advance the Dasa Project development and stay on schedule for yellowcake production in early 2026 while we finalize the major funding component."

GoviEx Uranium

GoviEx Uranium is positioned for success with its advanced-stage Muntanga project in Zambia. The recently completed bankable feasibility study demonstrates strong project economics, with low costs and potential production by 2028. CEO Daniel Major highlights Muntanga's simple open-pit mining operation utilizing an on-off heap leach process, with quick recoveries and high recovery rates. The company is seeing significant lender interest, particularly from South African banks, to fund development. While uranium prices remain low, Major has conviction they will rise, stating

"We have gone from a PEA in 2017 to a full bankable feasibility study in Muntanga. We have done the engineering on five different deposits, not one, five different deposits to build all of those together." "I'm very comfortable that over this year you will see the utilities come back and start looking at their U₃0₈ demands."

Dan Major, CEO of Goxiex Uranium

GoviEx aims to secure long-term contracts and believes "those two led U308 up." As one of the few near-term suppliers in a tightening market, GoviEx offers investors compelling exposure to uranium's bull run. Major affirms "I'm very confident in where I look at the market that uranium prices will go higher and we have to plan to be there to deliver into that market."

Premier American Uranium

Premier American Uranium is consolidating a dominant U.S. uranium portfolio, controlling one of the largest land positions in the historic uranium mining districts of Wyoming, Colorado and Utah. The company recently acquired a large database from AMPS, bolstering its technical capabilities. An updated resource for the past-producing Cebolleta project in New Mexico shows 18.6 million lbs U₃O₈ indicated and 4.9 million lbs inferred, with strong expansion potential. Initial drill results from the Cyclone ISR project in Wyoming indicate a mineralized trend open in multiple directions. Premier American is taking a disciplined approach to exploration and acquisition under an experienced management team with a track record of value creation in uranium. The company is well-positioned to help revitalize domestic production, aligning with bipartisan government support and utilities looking to secure supply. With the U.S. in focus, Premier American offers investors broad exposure to the uranium resurgence.

Colin Healey, CEO of Premier American Uranium

The Investment Thesis for Uranium

With governments and financial institutions aligned on the need for a major expansion of nuclear energy, the outlook for the uranium market is increasingly bullish. Over the long-term, substantially higher uranium prices will be required to incentivize the development of new mining projects to meet rising demand.

Potential benefits for uranium investors include:

• Strong fundamentals: Accelerating nuclear power development will increase uranium requirements. Mine production will need to increase significantly to match demand growth.
• Geopolitical drivers: Desire to reduce reliance on Russian energy supplies in the wake of the invasion of Ukraine is spurring nuclear investments in Europe and North America.
• Emissions reduction: As nations pursue aggressive decarbonization goals, low-emission nuclear is well positioned to complement renewable energy and will drive further uranium demand.
• Attractive valuations: Uranium mining equities are trading at low multiples following a prolonged bear market, providing scope for price appreciation as the nuclear growth narrative gains momentum.
• Supply inelasticity: Long lead times for new uranium mines means the market could experience a supply deficit in the coming years, supporting higher prices.

However, risks to consider include potential for construction delays or cost overruns on new nuclear projects, the possibility of substitution of uranium with other fuels or reactor designs, and ESG concerns around uranium mining practices.

The uranium market is poised to benefit from a increasingly favorable outlook for nuclear energy development worldwide. With key nations pursuing ambitious nuclear new-build programs and global financial institutions throwing their support behind the sector to enable climate targets, higher uranium prices look inevitable.

Although not without risks, uranium mining companies appear well-positioned for long-term growth and offer an attractive way for investors to gain exposure to the clean energy transition. As the market narrative shifts and investment capital flows into the space, uranium equities could deliver strong returns in the years ahead.

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_References:

_{1. World Nuclear News (September 2024). International Banks Express Support for Nuclear Expansion}

_{2. World Nuclear News (February 2025). Private Players Will Benefit India Nuclear, Minister Says. 3. EU Project Seeks to Develop New Research Reactor Fuel}